Gold Funds lose glitter: amongst the worst performers since demonetisation

Since demonetisation the markets have tumbled drastically, with Sensex clocking a negative return in excess of 4 per cent in one month time frame.

Along with the equity markets the gold prices have also fallen considerably. With gold prices falling the Gold Funds have followed suit.

Several of the Gold Funds are down by more than 7 per cent in a one month time frame. Kotak Gold Fund is down by 10.22 per cent, Reliance Gold Savings Fund is down by 8.50 per cent, Axis Gold Fund is down by 8.38 per cent, etc. 
None of the Gold Funds have been spared and are down more than the equity markets, which reflects how demonetisation has negatively affected the gold demand and hence the gold prices.

Relative to the Gold Funds the Gold ETF Funds have performed marginally better. The category has managed to clock negative returns between seven per cent and nine per cent.

Canara Robeco Gold ETF is down by 8.17 per cent, Quantum Gold ETF is down by 7.97 per cent, Birla SL Gold ETF is down by 7.97 per cent, UTI Gold ETF is down by 7.94 per cent, etc.

For those who believe gold prices have corrected enough and can inch up from these levels can look at Gold ETFs for investments.